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Balance Sheet Details

3 Months Ended

Jan. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance sheet details were as follows:

Cash, cash equivalents and restricted cash



	As of
	January 31, 2020		October 31, 2019
	In millions
Cash and cash equivalents	$	3,171	$	3,753
Restricted cash⁽¹⁾	377		323
Cash, cash equivalents and restricted cash	$	3,548	$	4,076

(1) The Company includes Restricted cash in Other current assets in the accompanying Condensed Consolidated Balance Sheets.

Inventory



	As of
	January 31, 2020		October 31, 2019
	In millions
Finished goods	$	1,245	$	1,198
Purchased parts and fabricated assemblies	1,315		1,189
Total	$	2,560	$	2,387

Property, Plant and Equipment



	As of
	January 31, 2020			October 31, 2019
	In millions
Land	$	90		$	241
Buildings and leasehold improvements	1,898			2,196
Machinery and equipment, including equipment held for lease	9,542			9,464
	11,530			11,901
Accumulated depreciation	(5,819		)	(5,847		)
Total	$	5,711		$	6,054

Notes Payable and Short-Term Borrowings

Notes payable and short-term borrowings, including the current portion of long-term debt, were as follows:



	As of
	January 31, 2020		October 31, 2019
	In millions
Current portion of long-term debt	$	3,399	$	3,441
FS commercial paper	696		698
Notes payable to banks, lines of credit and other	415		286
Total	$	4,510	$	4,425

On February 20, 2020, the Company issued $755 million of asset-backed debt securities in six tranches at a weighted average price of 99.99% and a weighted average interest rate of 1.87%, payable monthly from April 2020, $243 million of the asset-backed debt securities have a stated maturity date of March 9, 2021, followed by $512 million with a stated maturity date of February 20, 2030.

Warranties

The Company's aggregate product warranty liability as of January 31, 2020, and changes during the three months then ended were as follows:



	Three Months Ended January 31, 2020
	In millions
Balance at beginning of period	$	400
Charges	67
Settlements made	(77		)
Balance at end of period	$	390

Contract balances

The Company’s contract balances consist of contract assets, contract liabilities, and costs to obtain a contract with a customer.

Contract Assets

A summary of accounts receivable, net, including unbilled receivables was as follows:



	As of
	January 31, 2020			October 31, 2019
	In millions
Accounts receivable, net
Accounts receivable	$	2,684		$	2,782
Unbilled receivables	218			206
Allowance for doubtful accounts	(38		)	(31		)
Total	$	2,864		$	2,957

Contract Liabilities

Contract liabilities consist of deferred revenue. The aggregate balance of current and non-current deferred revenue was $6.0 billion as of January 31, 2020 and October 31, 2019. During the three months ended January 31, 2020, approximately $1.3 billion of deferred revenue as of October 31, 2019 was recognized as revenue.

Remaining Performance Obligations

Revenue allocated to remaining performance obligations represents contract work that has not yet been performed and does not include contracts where the customer is not committed. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations, changes in the scope of contracts, adjustments for revenue that has not materialized and adjustments for currency.

Remaining performance obligations consist of deferred revenue. As of January 31, 2020, the aggregate amount of remaining performance obligations was $6.0 billion. The Company expects to recognize approximately 42% of this amount as revenue over the remaining fiscal year.

Costs to Obtain a Contract

As of January 31, 2020, the current and non-current portions of the capitalized costs to obtain a contract were $51 million and $77 million, which were included in Other current assets and Long-term financing receivables and other assets, respectively, in the Condensed Consolidated Balance Sheet. For the three months ended January 31, 2020 and 2019, the Company amortized $14 million and $10 million, respectively, of capitalized costs to obtain a contract.